WeVote
Log In

Bill

Bill

AB 1481

Income tax: credit: immigration.

2025-2026 Regular Session Introduced by Jeff Gonzalez and 1 co-sponsor

Creates a temporary California income tax credit to offset the federal I-130 filing fee for eligible residents (up to $675 paper or $625 online; AGI caps), 2026–2030.

In committee: Set, second hearing. Held under submission.
#incometax #credit #immigration
0
WeVote Research Nonpartisan
Bill Summary · AB 1481

AB 1481 (Tangipa) — Summary

Status: In committee (Assembly Revenue & Taxation). Set for second hearing; held under submission (5/5/2025).
Introduced: February 21, 2025.
Subject: Income tax credit for immigration-related filing fees.

Purpose

AB 1481 would create a temporary California personal income tax credit to help offset the federal I‑130 (Petition for Alien Relative) filing fee. The stated legislative goal is to support legal family reunification by reducing the out‑of‑pocket cost for applicants and to track whether the credit advances that objective.

Key provisions

  • Adds Section 17054.6 to the Revenue and Taxation Code to allow a nonrefundable credit against “net tax.”
  • Credit amount (per qualified taxpayer, once per taxable year):
    • $675 for a paper-filed federal I‑130.
    • $625 for an online-filed federal I‑130.
  • Eligibility limited by adjusted gross income:
    • $250,000 or less for spouses filing jointly, heads of household, and surviving spouses.
    • $120,000 or less for all other individual filers.
  • Only one credit per taxpayer per taxable year; for married couples filing jointly only one credit may be claimed per joint return. If two persons could file jointly but file separately, only one may claim the credit.
  • If the credit exceeds net tax, the unused amount may be carried forward up to seven years.
  • Any deduction or credit that reduced income used as the basis for this credit must be reduced by the amount of this credit.
  • Taxpayers must provide information to the Franchise Tax Board (FTB) upon request in the form specified by the FTB for administration.
  • FTB reporting: on or before January 1, 2030, FTB must report to the Legislature the total dollars of credits allowed and the number of taxpayers claiming the credit. The bill treats this reporting as an exception to specified disclosure restrictions.

Effective period, sunset, and fiscal form

  • Intended operative period: taxable years beginning on or after January 1, 2026 and before January 1, 2031 (i.e., applicable to 2026–2030 taxable years). Note: earlier draft language also referenced January 1, 2025 and December 1, 2030; the most recent amended text indicates the 2026–2030 window and an inoperative/sunset date of December 1, 2031.
  • Declared to be a tax levy and would take effect immediately upon enactment.
  • Fiscal committee review required; no appropriation is included in the bill text. The bill will reduce state personal income tax revenue to the extent credits are claimed; the magnitude depends on uptake.

Who is affected

  • California resident individual taxpayers with AGI at or below the stated thresholds who incur a federal I‑130 filing fee to sponsor a relative.
  • The Franchise Tax Board (administration, reporting).
  • State General Fund revenues (reduced by aggregate credits claimed).

Procedural note

  • Multiple amendments were made in committee and the bill was re‑referred to Revenue & Taxation. Most recent committee action (5/5/2025): set for second hearing and held under submission.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.